Keystone Oil Pipeline Restart Is Approved by US Regulators

By Bloomberg

Dec 23, 2022

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GASCOYNE, ND - OCTOBER 14: Miles of unused pipe, prepared for the proposed Keystone XL pipeline, sit in a lot on October 14, 2014 outside Gascoyne, North Dakota. (Photo by Andrew Burton/Getty Images)

(Bloomberg) -- TC Energy Corp. will begin the process of restarting the segment of its Keystone pipeline that goes to crude storage hub Cushing, Oklahoma, after receiving regulatory approval, the company said on its website. The restart will take several days.

TC Energy has been targeting a full return of the pipeline system on Dec. 28 or 29, according to people familiar with the matter.

The shutdown of the pipeline that carries heavy crude from Western Canada to the US Midwest has roiled oil markets, limiting supplies to the storage hub at Cushing, Oklahoma, which is the delivery point for the US benchmark.

RELATED: Keystone Leaks More Oil Than Any Other Line in US Since 2010

One leg of the conduit — running from Hardisty, Alberta, to Patoka, Illinois — restarted operations at reduced flows last week, while the ruptured segment — extending from Steele City to Cushing — remains shut. TC Energy’s Marketlink pipeline connecting Cushing to the US Gulf Coast is also running at reduced rates.

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By Sheela Tobben